16 Nov 2010 07:00
16 November 2010
Management Consulting Group PLC
Interim Management Statement
Management Consulting Group PLC ("MCG" or "the Group"), the international professional services group, today announces an update on progress in its business since reporting its half-year results on 2nd August 2010.
In the second half of 2010 the Group has continued to operate in a market which reflects uncertain prospects for sustained economic recovery and the pace of growth in demand for consulting services. Despite this uncertainty, Alexander Proudfoot has shown a strong recovery in the second-half of the year and has reported improving levels of activity, ahead of the corresponding period in 2009. Kurt Salmon Associates has also benefitted from improving market conditions, although the US recovery is developing slowly. In the first-half Ineum Consulting reported that its performance in the French market was patchy, with some sectors stronger than others. Ineum has continued to face challenging conditions in parts of the French market and elsewhere which have affected its performance in the second half, although recent indicators of activity have been encouraging.
The Group's net indebtedness was reduced significantly as a result of the Capital Raising completed in the first half. Cash management continues to be a key focus for the Group and net indebtedness is decreasing as expected.
The merger of Ineum Consulting and Kurt Salmon Associates is well advanced and will formally take effect from 1st January 2011. The merged business will trade as Kurt Salmon.
As previously reported, on 31 October 2010 Craig Smith left the board and the Group and was succeeded as Group Finance Director by Chris Povey, who was appointed to the board on that date. Chris joined MCG in 2005 and has extensive operational and financial knowledge of the business.
Nick Stagg, Chief Executive commented:
"Whilst Alexander Proudfoot has shown a strong recovery in the second half of the year, Ineum has continued to experience a challenging market in some sectors. Overall the Board believes that the outlook is improving, albeit at a slightly slower pace than desired. MCG continues to believe that the business is well positioned to benefit from the recovery as it materialises."
For further information please contact:
Management Consulting Group PLC | Tel: +44 20 7710 5000 |
Chris Povey, Group Finance Director | |
Financial Dynamics | Tel: +44 20 7269 7242 |
Ben Atwell |
Notes to editors:
Management Consulting Group PLC (MMC.L) provides professional services across a wide range of industries and sectors.
It comprises three independently managed practices: Alexander Proudfoot; Ineum Consulting; and Kurt Salmon Associates. Alexander Proudfoot develops and implements operational improvements to its clients to increase productivity and reduce costs. Ineum Consulting provides consultancy services to a wide range of industries in both the private and public sectors. Kurt Salmon Associates provides consultancy services to the retail and consumer products sector and to the health care provider sector. The Group operates worldwide. For further information, visit www.mcgplc.com.